Question For a nondividend paying stock, you are given: i) The current stock price is 15 ii) The stock price after 1 year can be either 20 or 10 Hank calculates the no-arbitrage price of a European at-the-money put on the stock using an annual effective interest rate of 10%. Hank's price is denoted pr. Norma believes that the annual effective interest rate should be 20%. She calculates the no-arbitrage price of the same put based on a rate of 20%. Norma' s price is denoted p2r. Calculate |Pr P2r| Possible Answers 0.13 B 0.38 C 0.76 D 1.24 E 1.59